DATA COST DECLINES

voice call has dropped 58% while data rates have come down massive 90% with industry struggling from one challenge to another, Vodafone’s top executive Thursday said.
“Data cost dropped 90% and the cost of voice come down 58% in last 1.5 years. We are stumbling with one issue to the next,” Vodafone chief executive Sunil Sood said.

Top executive of the UK-based telco also said that the industry is going through financial crisis and operators have to obtain multiple licenses. Citing Vodafone’s example, Sood said that the irony is that the consumption increased 800% but in the due course revenue squeezed by 20%.

Telcos, according to him, have to buy back own spectrum in order to survive as an investment spanning 20 years would go off with an erosion of 15-20 million customers in a given circle.

Jio’s disruptive foray in September 2016 on back of freebies led incumbents to offer competitive tariff to take on billionaire Mukesh Ambani-backed rival.
Incumbents such as market leader Bharti Airtel, Idea Cellular and Vodafone India witnessed continued decline in ARPU owing to competitive plans launched to maintain or increase subscriber base.
Reliance Jio, however, recorded the highest decline of 11% quarter-on-quarter in ARPU (per month) in Q4FY18.
India has lowest ARPU in the world, he added.

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